Q1.
Passive investment is an approach where the portfolio manager has discretion in making investment and disinvestment decisions, within the broad investment philosophy agreed with the client.
Q2.
(I) Index schemes of mutual funds are an example of active investment style.
(II) Tracking error is a term used to quantify the extent to which the NAV does not capture the movements of the index.
Q3.
(I) Index schemes are also referred to as unmanaged schemes or tracker schemes.
(II) Growth investment style entails investing in stocks of companies that are growing faster than the economy.
Q4.
(I) Growth investment style is riskier than momentum investment style.
(II) Short-sellers tend to operate with strict “stop-loss” calls.
Q5.
An investor chooses to invest Rs. 5,000 in every 10th company listed in the stock exchange page. What would you call this investment approach?
Q6.
An investor wants to short-sell an equity share at Rs. 125. What is his potential gain and loss from the transaction?
Q7.
Immunisation is an approach where you maintain a liability structure that is the contra of the asset structure.
Q8.
What could be the reason/s as to why the same asset is quoted at different prices at the same time in different markets?
Q9.
What are the different techniques to value property?
Q10.
Tenures of term plans generally range from ______ to ________ years.
Q11.
When a company’s profit increases, EPS decreases.
Q12.
(I) Term plans are very important when you have dependents or have taken a substantial loan.
(II) Term plan is a savings plus insurance scheme.
Q13.
(I) Endowment plans are suitable for those looking for a risk cover coupled with some medium term financial planning goals.
(II) Money back plans are suitable for those looking for a risk cover coupled with some long term financial planning goals, such as child’s education, marriage etc.
Q14.
In India, the special Economic Zones (SEZs) policy was announced in
Q15.
According to a survey by CB Richard Ellis, the average yield from commercial property in London is _______.
Q16.
A capitalization rate is applied to the estimated net annual income of the property.
Q17.
A 5% capitalization rate will mean property is valued at 20 times its net income. If net income is Rs. 2 lakhs, it will be valued at __________.
Q18.
The minimum quantity of gold accepted as deposit is _____ in gross weight.
Q19.
Name two assets that could protect investors from inflation over the long term.
Q20.
What are the unique problems associated with direct property investment?
Q21.
Typically, the fees involved in a purchase transaction of a property can be between _______ and __________ of the value.
Q22.
Typically, loans of up to ___________ of a property’s value may be advanced.
Q23.
Investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared periodically.
Q24.
(I) Diversification minimizes the loss, but also becomes a drag on the gains.
(II) Leveraging increases the investment risk
Q25.
A speculator takes a call on future short term movement of stock prices based on some analysis.
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